hi, welcome to "power lunch. glad i could join us for the hour the ten-year yield continues to ri rise, and bitcoin flashing through 51,000 now, and there's a rush on wall street to profit from the cryptocraze we're going to talk about one company that is take on grayscale's trust. and wild weather sweeping is the country the. we're going to talk to generac

in a few moments interest rates are continuing to rise hovering near the one-year high. dom chu, how is this affecting stocks >> i need more power, morgan, tyler, but look at where the power is coming out of the marketplace. we're seeing slowing momentum specifically in areas of the market where we have positive momentum over the course of the past 12 months, specifically the ten-year note yield. yields having creeping higher. at one point we bot to 1.33% intraday, the highest level going all the way back to february of last year. keep an eye on rising interest rates. they're having a bigger ripple effect on the equity markets valuations are coming into question as interest rates raise, some of the assumptions on how you value

stocks need to be rejiggered a bit. you're seeing it it in the invesco qqq trust, down about 0.75% today. a real outperformer, russell 2000, down about three quarters of a percent, and xlk is down a little over 1 percent. these are stock lows, by the way. some of the biggest gainsers over the last year are coming down more in today's trade etsy, paypal, and twitter are just a few. the fed has released its minutes from the meeting back in february rick >> the headlines are quite logical. one of the key is how they deal with the buybacks, but also they

believe that even once we again the vaccine out there, it's going to take a long time before we make substantial progress and some of the headwinds that powell and the gang have been highlighting these are major issues to contend with against the backdrop that notion -- and this isn't only in the u.s., but all sovereigns seem to definitely have turbochargers despite the promises of central banks to keep their thumb on the short end and on purchases quickly, ten last year was at 92 we're epps close to 40 basis points i really like this chart this is july of '12 to july of '16. the double bottoms before covid hit, these were the all-time lows those are the areas you want to watch. we basically just about got up there. it wouldn't surprise me to see a

built of a prereprieve and retest that breakout one issue, you're going to hear a lot about how inflation is temporary in these minutes, a temporary factor, which means even if we see a pot like pti, they'd ignore it a while, which maybe is the highlighting of the new policy on inflation. rick, thank you. steve liesman has been digging into the fed minutes what have you found so far >> yeah, morgan, a cursory dig looking at some of the headlines. remember when the fed met at the first meeting of the year, they said the pace of economy activity had mott rated. that is not the case today back then weak demand and back then low oil prices were holding down inflation, the pace of improvement in the labor market fed officials observed had slowed at the time and indeed remained relatively low, this is something that the fed chair had said, substantial higher than

the published rate he said it's actually closer to 10%, and inflation was well below -- was poised to come in well below it depends on the course of the virus, and the fed was committed to using its full range of tools. the fed is prepared to adjust the stance of economic policy, monetary policy as appropriate, to adjust for different risks that are out there not a lot of new light being shed on this the fed is in a steady and she goes and i would also say don't flinch stance right now, where it's prepared for inflation to come in higher than expected, prepared for bond yields to rise, and yet really holding its feet to the ground when it comes to changing monetary policy, which is to say it's not going to do it based on any temporary runs.

>> which is certainly the conversation we've been having there was the rosenkranz comments as well earlier how does it suppose to what is essentially a shift, i guess, in fed policy around how it's viewing inflation? are there other points in history where we with point to a similar stance looking back and what that has meant for the markets? >> we can and we can't, morgan what's happening in and out is an evolution of the policy from the great financial crisis, where the fed tried to hold the line, but kind of said, you know what we may want to change. it's been almost ner that the fed referring has planted its policy so firmly in the ground and really told markets it's not going to change it based on the old factors like a little bit higher inflation remember, the fed is looking at this all-inclusive rate, that is

factors the unemployment rate as one factor looking at the degradation or decline of the labor market that it believes willlast beyond returning the economy to more normal activity. there are still 10 million jobs lost so far. by the way, it sees higher inflation, fed officials who i have spoken with, do believe it's coming, why because of base effects. old low numbers will work out, you'll have some rebound in demand, but not necessarily a rebound in supply. when that happens, the inflation numbers come back down later this year. >> thank you, steve. let's get to our panel for a more reaction. lindsey is chief economist at stifel larry adam is chief investment officer at raymond james lindsey, let me start with you, do you hear anything in what the fed has said that changes your

view on inflation or the growth of the economy, the trajectory of the economy or is it pretty much what you expected. >> very much in line with expectations what we hear is the committee highlighting the ongoing weakness, particularly when it -- very accommodative stance, but offer assurance to the market, and that they intend to remain in this very accommodative stance for the foreseeable future until the economy emerges, back to the full employment and stable inflation near 2%, which in the fed's pin could be several years from now there's a lot of optimism in the marketplace, but the fed says to get to this sustainable organic pre-pandemic level, it could be quite some time, so the minutes highlighting the emphasis that the fed has voiced to the marketplace through several

commentaries, through several testimonies that they do intend to keep things low. >> let's turn the corner, larry, and talk about the impact on equities as you've been talk over the years, a bit of inplace is pretty good for stock provideses low interest rates pretty damn good for, and a growing some i for very good stock prices all of those things are in place. >> absolutely. i think, you know, you just outlined a coming. we put owl six factors, and, you know, one, we're in the first year of a bull market. historically it lasts six years. we think it stade on for three years. growth is more than -- five, if

you look at the fiscal stimulus, you're talking about $5 trillion being pumped into this economy i think within this vaccination process will be well under way we'll be returning back to normal i would -- if we're tacking as much as $5 trillion, how does that trance late to economic growth i realize the fed has a very narrow definition of what they consider inflation that will potentially possibly shift their possibly how does it speak to, i guess what we should see in terms of prices, and spending power, et cetera >> typically when we talk about

the government pumping trillions into the economy, we would soup there's -- i do great in the medium to long run when we have massive unchecked, there will be lasting and sizable consequences in the near term, it's going to trump those longer-term concerns, mean the velocity of money, the weakness is overshadows the increase, that doesn't mean we won't see volatility in inflation. when we see the low, low levels, we would expect it to pick up, but again as the fed mentions, this is a temporary bout of

inflation as oppose to the begin of an upward trajectory. right now there isn't a lot of implication for the fed that inflation is a near-term concern. let's go back to steve, who has probably mined a nugget from the fed's report there steve? >> yeah, three nuggets you can take them to the bank there, tyler the fed is saying it's likely to take time to achieve substantial further progress that's it is buzz phrase for when the fed might change the quantitative easing with the purchase that its making second, it will community indicate any changes to qe well in advance that's a big part of powell's policy finally, directly to what lindsey was talking about. it's important to distinguishes between changes in prices, and the fed sees though as two different things prices go up on a one-time basis. steve, thank you very much

and thank you to lindsey and larry adam we appreciate your time today. well, the gamestop saga won't stop it heads to washington tomorrow. that reddit user who goes by roaring kitty has just been sued we're going to go to kate rooney for more on that >> his legal name is keith gill, but most people know him as roaring kitty or deep effing value online he's been sued he's best known for youtube videos and reddit posts promoting gamestop it accusing him of using a stake persona and at the time he was work fog mass mutual as a financial wellness director.

he holds numb lutz licenses, and is a registered security broker, his employer is named in the lawsuit. he's accused of causing a frenzy gill was not immediately available for comment. we did reach out this does come just a day before a set of ceos are set to appear in front of the congress on this very issue the heads of robinhood, citadel, melviln capital and reddit are set to testify tomorrow. wee see convex about market manipulation in this new era, and of course some questions about conflicts of interest with hedge funds and market makers. morgan, back to you. >> let me ask you this, if i might, kate. is mr. gill likely to appear if he appears, is he likely to

talk if he faces the potential of prosecution >> as of this afternoon, gill is set to testify he's the only non-ceo in that group. he's in the company of big ceos of hedge funds he is expected to speak. we haven't gotten word that that has changes since the lawsuit dropped. he is sore of emblematic of this new type of trader and the phenomenon of people -- he did sort of -- and it does seem he's more of a professional traders based on this lawsuit. >> what do you think, headband or no headband when he appears in front of congress what would you advise? >> that's a great question i'll take the over on that i think maybe we'll see a head band. >> wow i would love that. coming up -- thanks, kate. >> thank you. wall street is looking to bank on the boom and with no

etfs a number of bitcoin -- he -- right after this break, as bitcoin, look at that, up nearly $3,000 today as theinr at wteweher batters the country, the ceo of generac will join us with more "power lunch" after this break. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪♪ our retirement plan with voya, keeps us moving forward. hey, kevin! hey, guys! they have customized solutions to help our family's special needs... giving us confidence in our future ...and in kevin's. voya. well planned. well invested. well protected. we see smarter software delivering cleaner power.

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to another record high and number of firms are launching funds to catch in on this with a industry low management fee, taking aim at grayscale's 2% fees and the osprey turning a little lower today, white the grayscale and bitwise are higher greg kane, thanks for being with us. >> hey, morgan great to be here where bitcoin is concern, what does differentiate your offer verse the others that are already in place and what's now expected to be potential with a new s.e.c. chair coming in, etf

offering for a lot of other companies, so we approach this space from that mindset. what we wanted to do with the osprey bitcoin trust was to provide an investment that ked access by a traditional brokerage. we wanted to do it in two days -- one, as a lower price point. some of the costs involved are significant, so taking down the price we thought added value, but we partnered with fidelity as the custotocustodian. you know, we feel very good with fidelity overseeing the bitcoin in our trust those are the two main points. we have a couple more technical points that advisers care about, because you do have fiduciaries, and they haven't had a good solution for a very long time.

>> yeah, we had news earlier today, federal authorities had said the three programmers had been at the indicted to steal and extort cash and cry occurrency i think back to the tesla filing around its bitcoin purchase. i mentioned cyber secure risks as par of the sitition. >> how do you keep your offerings safe >> purists are enthusiastic about keeping in control of your own keys, and we respect that. there's a whole swath of people that are interested as an emerging technology, right it's disruptive. those people want exposure to it, but they want it in a user-friendly fashion, so, you know, with our background creating ticker-based product, that's the way forward for the

u.s. market. you want to partner with best in class providers, which i say we've done taking it off-line, and we feel it's very safe, but that's a third party from us to ask it this way, is bitcoin, as a secure, a price away asset, commodity, i would say. >> okay, a priceable commodity what is are odds that one morning i'm going to go online and my bitcoin will go poof, because somebody like solarwinds, the hack, has gone

in and done that >> i think it is higher, and part of what makes bitcoin bitcoin is that it can be transferred easily, right? it's a concern for someone to drive up a truck and take the gold bars away, that's just not real likely to happen with bitcoin, if it's scored digitally, it can happen, but there are ways to mitigate against that the biggest one is what's called cold storage, which essentially means something as writing down a password on a piece of paper not connected to the internet and putting it in a vault

somewhere stored in vaults, this is how you safeguard bitcoin when you do that as an institution agreed level, then you can feel very safety about the risk to your particular -- >> yeah, there's a lot of duties certainly you've built a year looking at and capitalizing on risk with some of the products you offered. i know the xiv has gotten the attention, the daily inverse the short-term etf that was delitted a couple years ago.

howbaked into this product from today? so the legal structure is very straightforward. is it, so it feels like in this particular case, and osprays is a digitally focused company. the only thing we do and are going to do putting the ticker symbol on them so they can be accessed in these brokers accounts, and doing so in what we feel is the best practices type of approach, partnering with best in-clays providers and doing so at a reasonable price. >> congratulations on the

launch we look forward to staying in touch as you continue to grow it thanks. >> i would definitely lose the password and then i would forget the vault number. >> you were on vacation, but we actually did the story on the stranded bitcoin billionaires. >>i can't remember my password to the oral test for my nose swab it's awful so that too personal note, monday, tuesday, nose-day, that's how we remember spacex, we are looking at the space race from musk and bezos plus stocks are xemid. nasdaq the big lack guard. we will have more on the markets when "power lunch" returns

this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

welcome back elon musk's spayics with a total valuation to about $74 billion that's up 60% from the last funding round in august. the space race continues to heat

up with jeff bezos' blue origin. spacex boths 74 rocket booster launches, and blue origin is just 13, and the valuation for blue origin is still unclear cnbc's michael sheath joins us now with more on what musk plans to do with that war chest, and michael, perhaps not surprisingly, in your reporting, you also note that there was so much investor interest, more than the company actually took on in this round again >> yes, morgan, that's exactly right. thanks for having me on here to talk about this. there's so much pent-up demand for spacex chairs. six months ago they raised a $46 billion valuation. brought in $2 billion in

capital, yet now raising another $850 million round, so the real catalyst is, since billion offered that they raised in the capital round this time, and that came in just over three days so there's a lot of pent-up demand, almost anyone who is trying to get their hands on space exshares is looking to, and also a unique position in which they can stay private yet offer existing shareholders, some company employees, actually a way to get some capital out, and they were able to complete a $750 million secondary transaction on the part of this. >> yeah, it's incredible i was going through the numbers. at roughly a $74 billion

operation, it's by far one of the most valuable privately held companies. it looks like bytedance and maybe stripe are the only two startups i say that loosely, because this company has been around for a while. where is the money going to go we talk about star ship, starlink,s thor the two avenues? >> that's exactly rights starship is one very ambitious pro project, which is to build a next-generation stainless steel rocket, which musk envisions more lining air travel, where they land, refuel launch again and keep flying. that project is one he's previously said is going to be cost about $5 billion to fully develop. on the other hand, starlink is a consumer-based high-speed internet satellite is many to

beam down a new broadband signal it's a system that's been envisioned before and musk says he hopes they don't go bankrupt, but if successful, that might be a new opportunity for people to buy their stock. musk has said once they're in a stable cash flow position, they would look at taking star link public, spinning off of it and seeing how it publicly trades. >> it's definitely one to watch. certainly they would be the first company, if that were to happen to not only not go bankrupt in terms of broadband satellite service, but also i think it would be another major milestone for musk in this market we just talked about this comparison between jeff bezos and elon musk. i think we'll have to leave that to a number of days, but there's a number of government contracts that will pit the two against each other

i think we'll be watching those closely. miking sheetz, i like the surfboard. >> how are you cubing on the podcast, sheetz creek? >> maybe the working title will change we'll see. thanks a lot, man. appreciate it. >> it's worth noting -- we just showed some of the video starship are rowling out they prototypes rapidly, doing the tests with them rapidly in space, that can process testing and seeing a rocket land and explode upon impact. >> the trick is the landing. >> yeah, yeah. they're talking about reusability. they're rolling them out every couple weeks. ahead millions still without power in texas,, without heat, without water. the ceo of gene are. ac will join us. what is the best place to stash

your cash if inflation is coming we will talk bitcoin versus gold it's been high times for the marijuana stocks lelaty. can the trend continue tilray reports tonight, when "power lunch" returns. new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home.

welcome back governor cuomo is laying out a guideline to ease of restrictions amusement parks get the green light for april 9th. and sleep-amp camping should plan to reopen sometime in june, just in time for the summer. and families of senior who is died in nursing homes are calling for a federal investigation into reports that state officials covered of deaths at long-term care facilities a study has found a number with eye abnormalities they have nodules near the back of their eyes.

researchers suggest that patients with severe cases undergo scoring. morgan, back to you. as extreme weather and energy problems continue, more and more people are turning to generators generac is up 42% alone, knotts justify stream -- people are relying more heavily on their own power sources. aaron, thank you for having about us. >> thank for having me on, morgan have you seen it translate? >> it's almost an immediate impact whether it's a hurricane or the fire safety shutoffs out in california, major storms that roll through all the time.

obviously with what's going on in texas right now, it's a pretty serious situation you do this in the summertime, it's one thing in the wintertime, it's a whole host of additional problems. we're doing our best to get as much product as we can to that market. i look at that, the acquisition you did not look that long ago is the expectation whether it's in texas or elsewhere that that driving greater demand >> i think the topic of power secures this is it is legacy part of our bit.

whether it's for hospitals or data centers or homes and businesses, we've been delivering those types of products for over 60 years we're moving into more of the technology space how do we heart necessary the power of those? that's rather be what it's all about, software that helps utilities manage and better balance that supply and demand. i'm thinking specifically for residential if i ordered a

product today, when could i get it installed >> 20 weeks. it is a home improvement projects, so there's a permitting process, contractors involved in terms of capacity, we have been at full capacity here at our plants in wisconsin really since the pandemic hit we did an announce a plant that will be online, and we can't make them fast enough. getting the installation up and running, we need more it's just a backlog of everything.

>> do you expect that power and power security will play a role now in any infrastructure deal >> i think it has to >> you think about cyberattacks and the order as a result terms, and the changesing make of it. you're going to put a lot of dill stresses on the grit that don't exist today any consideration has to include something around the grid. >> thank you so much for joining us we look forward to having you back and hearing more about the shifting portfolio of generac will continue to look like thank you. coming up, you debate that's dividing the generations -- bit coin versus gold

stick with the security of gold or ride the waving of bitcoin. our traders will way in. stay with us

welcome back to "power lunch. i'm seema mody as money pours into bitcoin, investors are fleeing gold, which has seen its largest weekly outflows in three months. another blow to gold, rising treasury yields, which makes holding the metal less attractive which is the better bet -- bitcoin or gold? todd gordon, and quinn tetro, quinn, what do you make of the correlation between bitcoin and gold, gold of course being less volatile and also a hard asset,

trading below $1800 now? >> i'm not sure if there is a correlation, maybe an inverse correlation. we're fans of both, but i have to be candid, it's been difficult to be long gold here we still believe that longer term it's in an up trend it's prison from $1100 to 1900, and then is pulling back we're still a buyer here of the weakness of gold, as hard as it is, and if you're lucky enough to own bitcoin, you know, strap on and enjoy the ride. >> todd, you're taking the flip side to this argument, bitcoin now with a market cap of around $916 billion, still one tenth of the value of gold, but where does it go from here >> yeah, i hold bitcoin just under 2% of mire portfolio, but gold first a lot of people are thinking it's an inflation head

it's been trading as a deflationary hedge they're trading with gold since 2018 they have begun to roll over as this is picking up, but we have a sustained cpi of about 2% in the year i think the move in raids is temporary. it's consistently deflationary, we're getting corporate and institutional players enters the market i don't want to be overly bullish, but simple technical analysis, you don't see resistance unit about 150k i think there's a lot more room to go. >> we'll see if you're right todd and quint, thank you. to break down warren buffett's latest billion dollar bet, be sure to follow us on twitter morgan, back to you. shares of tilray are down today, but so far this month and a half, the stock is up nearly

300% the company reports after the bell how should you play it "power lunch" will be right back >> announcer: now the latest from tradingnation.cnbc.com and a word from our sponsor. sometimes called an m formation because of the way it looks on a chart, a double top consists of two, well defined peaks at approximately the same price traders often view a break of the lowest low as a bearish signal i'm lee bohl and schwab is the better place for traders

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welcome back testimony coming out now ahead of tomorrow's congressional hearing on the gamestop drama. kate rooney and leslie picker have the details kate, let's start with you >> hey there, morgan a couple different testimonies out. i want to start with robin hood's ceo he says that robin hood did not help hedge funds to customers' detriment. we are still looking through ten ev's testimony we also got one from a reddit trader keith gill. he says the idea he used social

media to promote gamestop stock was preposterous his channel he says was for educational purposes only and also says he is an individual investor not a hedge fund. he says his investment in gamestop and posts on social media were entirely his own and he also still maintains gamestop is under valued. he says the company is still dramatically under valued by the market morgan, back to you. >> thank you leslie want to get your reaction or your thoughts on what we're getting here in terms of information. >> so this is the prepared testimony from melvin capital's gabe plotkin who will be appearing tomorrow tackles a few issues in this prepared testimony. number one the idea of short selling. he will say that absolutely none of melvin's short positions are part of any effort to artificially depress or manipulate downward the price of a stock and nothing about our short position prevents a company from achieving its objectives it is just melvin's view about whether it will.

also tackles this idea which was quite controversial at the time of robin hood's decision and other brokers' decisions to limit purchases of certain securities, including gamestop he will say that melvin capital played absolutely no role in those trading platforms' decisions. in fact, melvin closed out all of its positions in gamestop days before platforms put those limitations in place then if you recall melvin capital as all of this was unfolding, it received an investment from citadel and .72, 2 $2.75 billion. gape plotkin will address this as well saying melvin capital was not bailed out in the midst of these events. he says that is contrary to many reports and noting citadel proactively reached out to become a new investor similar to the investments others make in their fund the opportunity in essence for citadel to buy low and earn returns for investors. other aspects of the remarks

include the fact that january was very humbling for plotkin. he mentions his background growing up in a middle class family in portland, maine. he is married with four children and that his firm melvin was named after his grandfather who ran a convenience store. so noting again that he says he was humbled by what happened in january, that his investors which include a variety of academic institutions, medical research, and other charitable foundations also impacted by all of this, guys. >> it seems like there is a lot of personal anecdotes just based on the little bit that i'm going through here in terms of the testimony we're getting ahead of time as well i guess to that point, kate rooney, i mean, just looking at, you know, the gill testimony, it talks about the fact that he married his wife in 2016, he had a job. he lost the job. that is when he started basically looking to do some day trading to increase limited savings and then in april, 2019, accepted a marketing and financial education job at mass mutual director of financial wellness education, quote, my job was to

help develop financial education classes that advisers could present to perspective clients i never sold securities and i was not a financial adviser. all right. we'll keep going through all of this a wllnde' bring kate and leslie back with other headlines we get along the way ahead of that testimony tomorrow in the meantime we'll go to break. stay with us you'll make a plan that can adjust as your life changes, with access to tax-smart investing strategies that help you keep more of what you earn. and with brokerage accounts, you see what you'll pay before you trade. personalized advice. unmatched value. at fidelity, you can have both. ♪ more than this ♪

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the industrials up considerably, by 0.25% nothing to be sneezed at the other major indexes moving lower. bond yield 1.29% fairly significant there bitcoin is up. oil is up, morgan. >> that's right and big tech lower which is part of what is bringing the broader averages down as we have seen rates go a little bit higher. we've just talked about gamestop another one to watch, a reddit fan favorite cannabis stocks we have tilray after the bell to keep an eye on that. thanks for joining "power lunch" and "closing bell" starts right now. >> i don't think sara's mic is working. it was for me. welcome to "closing bell." i'm wilfred frost with sara eisen with stocks bouncing around the dow higher and nasdaq s&p, and russell all